Procurement Strategies for the Oil and Gas Industry

Boost your understanding of industry best practice to maximize the value of contribution to the business

Attend this three-day interactive programme to gain insights into:

  • Various debt financing options for a project, both on a Project Finance basis as well as other corporate debt financing options - including Borrowing Base loan facilities
  • Debt structuring techniques that reflect and allocate the risks inherent in a project
  • Financial models to assess financial viability for the key project stakeholders
  • Motivations of key stakeholders in projects and their implications for the financing approach
  • Identification, evaluation and allocation of key risks in Project Finance
  • Risk and return issues for  both debt providers and  equity investors in the project in order to develop an appropriate capital structure

What is the programme about?

Procurement in the oil and gas industry has always faced particular challenges. Highly visible spend, restricted supply-base, technical and contractual complexity, remote and difficult locations to support, and the need to operate in an environment with JV’s and other risk sharing mechanisms.

 
The recent economic climate, increasing production costs and move into new technologies increase these challenges; and Procurement Leaders need to think about the strategies they employ to maximise the value they bring to their organisations. This programme highlights thinking and initiatives which push procurement to the forefront of the organisation. Thinking which has been tried and tested and which has been seen to deliver results.

 

  • Tender or Bidding Managers
  • Contract Administrators
  • Contracting Unit Supervisors
  • Project Engineers and Project Managers
  • Business Audit Officers
  • Contract Strategists
  • Commercial Managers
  • General Managers involved in developing contracts or contract negotiation

MODULE 1: INTERNAL ISSUES 

 
Procurement challenges facing the Oil & Gas Industry
With production costs increasing and the focus on new forms of energy, procurement has an opportunity to increase its profile and contribution to the success of the organisation.  This session explores:
 
  • New approaches to the traditional challenges of restricted supply-bases, cost, quality and lead time
  • New challenges to be dealt with: innovation, environmental issues and the new technologies
  • Emerging trends in procurement and how companies are responding to them
 
Aligning procurement with corporate goals and objectives
Some functions are seen as being truly strategic, and others are seen as operational.  Others are seen as being support functions.  In a select few organisations, procurement has made the leap to achieving true strategic status.  This session explores what needs to be done to emulate this
 
  • Can procurement be a strategic function?
  • Taking a strategic view of the function
  • Tools that are needed to deliver the strategic focus
 
Improving the working relationship with key stakeholders
A recent survey onto the problems facing Procurement led to the conclusion that we face more problems with colleagues and internal stakeholders than we do with suppliers.  This session explores the findings from the survey and the examples of excellent practice which it uncovered
 
  • Suppliers or stakeholders – which is the biggest challenge facing procurement?
  • Survey results on why other functions prefer not to work with procurement
  • Ten strategies for ensuring early engagement by stakeholders
 
Procurement Leadership – a gap to be closed?
As we have implemented procurement systems, sourcing processes, and systems of auditable delegated authorities; there has been much written that the oil majors have been responsible for downplaying the importance of leadership.  Is there a place in procurement for the leadership portrayed by a Richard Branson, an Alex Ferguson, a Nelson Mandela? This session sets out the requirements of procurement leadership and provides a software tool for assessing the leadership capabilities of participants.
 
  • The need for leadership not management
  • Do procurement systems and processes lead to a lack of leadership?
  • The Procurement Leadership Audit Tool
 
Outsourcing procurement
The trend towards outsourcing procurement has been gathering pace for a number of years.  We may fear it, resist it or accept it, but we also need to understand it, how it works and how we can assist Senior Management to make the right decision when presented with it.
 
  • The case for outsourcing procurement
  • The track record so far
  • The ten most commonly found problems – and how to pre-empt them
 

MODULE TWO – EXTERNAL ISSUES

 
Category Management – has it under-delivered?
Like many trends in procurement, category management was seen as an opportunity to move procurement into a more strategic role.  In some cases it has succeeded, in many it has failed. This session explores the difference and the steps which need to be taken to ensure it achieves its full potential
 
  • The logic behind category management and why it has not delivered
  • Examples of best practice where it has achieved stunning success
  • Re-inventing the approach
 
Risk management – an area of increasing concern
The oil industry by its nature carries more risk than most others, and with the significant use made of suppliers, contractors, technology partners and advisers, there is a need to ensure that risks are understood and dealt with.
This session covers:
 
  • Risk – prevention, mitigation or disaster recovery?
  • The procurement risk audit
  • A framework for screening and managing risk
 
Procurement on complex capital projects
On many major capital projects procurement is under-represented as responsibility for procurement is handled by consultants, turnkey contractors, engineers or others.  This session shows how to deal with that by exploring:
 
  • Why Major Projects require particular focus
  • The commercial overlay to project management processes
  • The seven major challenges on major projects and how to deal with them
 
Innovation – harnessing the supply base
With the pace of technolological change accelerating and the need to find new ways of extracting resources, procurement needs to be taking the lead in tapping into the supply base as a way of delivering innovation. This session explores:
 
  • Is Procurement capable of delivering innovation?
  • Exemplar approaches which have delivered success
  • An agenda for delivering innovation to the business
 
Contract strategies, operationalisation and the commercial framework
The concept of “Think, plan, do” has much to commend it.  Thinking through the strategy for a contract, planning how to structure this within a sensible commercial framework and ensuring that the provisions of the contract are brought to reality is increasingly important.
 
  • Using a commercial framework to determine the most appropriate contract strategy
  • What does a good contract strategy look like?
  • How do we ensure that contracts are operationalized and become practical working tools?
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Testimonials for our Courses

“I found the course material focused on optimising refinery processes and calculating costs valuable. I am very pleased with the course.”

Dates & Locations



This course is only available as a custom course tailored for your business, contact us to discuss your requirements.